Most of us might be waiting for the iPhone 6 release date with bated breath, but it seems Apple’s next wave of device launches has put the serious willies up one South Korean firm.
Just at a time when mobile tech market evolution is at an all-time high, Samsung is far some reasons focusing more time, attention and indeed money on advertising than in the development of new products. And needless to say, this isn’t the kind of revelation that bodes well with investors.
Having not only warned earlier this week that record profits would not be posted for the first time in two years, the books for 2012 showed that Samsung pumped significantly more money into marketing its products than it did in the research and development of new technologies.
And despite that fact that the Samsung Galaxy S4 launch was a pretty high-profile affair and captured the world’s imagination rather well, analysts are concerned that even the S4 may not be enough to bring long-term success in the face of such enormous competition.
Logically speaking, a device as supposedly groundbreaking as the Samsung Galaxy S4 should by rights sell itself – or at least not need the most gargantuan of marketing pushed behind it. We already know how good the Galaxy S Smartphone range is and the overwhelming majority of interested parties are already sold on the S4.
Nevertheless, with the likes of the iPhone 5S, the iPhone 6, the HTC One, the LG Nexus 5 and plant of other top-tier handsets on the horizon, Samsung apparently feels its flagship range no longer offers enough to serve as its own marketing campaign outright.
In figures, Samsung spent $1.3 billion more on marketing and promotion in 2012 than on the development of new product – a rather lofty $11.6 billion. According to analysts however, what Samsung should be focusing its efforts on is bringing an entirely new dynamic to the market with an all-new product – not the same product we already have with a few internal and external polishes.
After all, specs and features are one thing – true innovation is something entirely different.